Canadian oil and gas company Bengal Energy is exploring Bitcoin (BTC) mining as a way to harness untapped energy from its gas wells in the far reaches of the Australian outback.
According to a note from The Australian, Bengal Energy is going to carry out a pilot program in which some 70 Bitcoin mining equipment will be installed inside a portable enclosure – known in the local mining industry as a “donga” – that will be installed near from a series of previously decommissioned gas wells in the Cooper Basin.
According to Bengal Energy COO Kai Eberspaecher, the company purchased the gas wells from its local oil and gas extraction partners, Santos Energy and Bridgeport Energy.
Eberspacher added that the recently acquired gas wells pose an interesting problem for the energy company because they are what are known as “stranded wells.” This means that although the company can technically produce power from the gas on-site, current distribution pipelines are too far away to reach them.
A pipeline that can service remote Bengal gas wells is currently under construction, but development delays have been compounded by supply chain issues related to the Covid pandemic.
“We were basically facing six months of having wells ready but with no way out. We were dealing with stranded assets.”
Portable Bitcoin mining rigs in dongas were the solution to the problem. A test donga will be equipped with 66 mining rigs that can generate approximately 0.005 BTC per day, which is equivalent to about $235.
If the test is successful, Bengal Energy aims to multiply its Bitcoin mining output by a factor of 10 to 20 times, meaning total revenue could reach $2,000 to $5,000 a day.
Bengal Energy joins the growing list of mining companies, including ConocoPhilips and Exxon Mobil, trying to harness the full potential of energy that is normally wasted or lost through portable Bitcoin mining operations.
In response to widely publicized criticism of Bitcoin mining on environmental grounds, fossil fuel companies have become increasingly concerned with finding new ways to limit the harmful by-products of mining operations, as well as taking advantage of any sustainable alternatives where possible. possible.
The Bitcoin Mining Council estimated a 58.5% sustainable energy mix for global industry in Q4 2021. Miners in Norway even use waste heat to dry wood.
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